Glenbard Township High School District 87
Policy 4:30-R3
Operational Services
Administrative Procedure – Permissible Investments Under the Public Funds Investment Act
A. Bonds, notes, certificates of indebtedness, treasury bills, or other securities guaranteed by the full faith and credit of the United States of America as to principal and interest.
B. Bonds, notes, debentures, or other similar obligations of the United States of America or its agencies (“ agencies of the United States of America” include Federal Land Banks, Federal Farm Credit Banks, and any other entity authorized to issue debt obligations under the Farm Credit Act of 1971 as amended; Federal Home Loan Banks and the Federal Home Loan Mortgage Corporation; and any other agency created by an Act of Congress).
C. Interest-bearing savings accounts, interest-bearing certificates of deposit, interest-bearing time deposits, or any other investments constituting direct obligations of any bank insured by the FDIC.
D. Short-term obligations of corporations organized in the United States with assets of more than $500,000,000.00 if:
1. At the time of purchase the obligations bear one of three highest ratings established by at least 2 standard rating services and will not mature not later than 180 days from purchase;
2. Purchases do not exceed 10 percent of the corporations’ outstanding obligations; and
3. No more than 33% of the public agency’s funds are invested in such short-term obligations.
E. Money Market Mutual Funds where the portfolio of the fund is limited to bonds, notes, certificates of indebtedness, treasury bills and other securities described in A and B above and to agreements to repurchase such obligations.
F. Interest-bearing bonds of any county, township, city, village, unincorporated town, municorp., or school district, which are registere in the name of the municipality or held under a custodial agreement at a bank. The bonds shall be rated at the time of purchase within the four highest classifications established by a nationally recognized bond rating service.
G. Short-term discount obligations of the Federal National Mortgage Association or other securities legally issuable by Savings and Loan Associations incorporated under the laws of any state or the laws of the United States.
H. Dividend Bearing Share Accounts, Share Certificate Accounts, or Class of Share Accounts of a credit union chartered under the laws of Illinois or the laws of the United States so long as the principal offices of the credit union are located in Illinois, and the accounts of the credit union are insured in accordance with applicable law.
I. A Public Treasurers’ Investment Pool created by the State Treasurer under Ill. Rev. Stat.
19089. Ch.130, S17.
J. Funds managed , operated, and administered by a bank, subsidiary of a bank, or subsidiary
of a bankholding company.
K. Government securities having the meaning set out in the Government Securities Act of 1986
or repurchase agreements for such securities. The securities must be registered or
inscribed in the same name of the school district purchasing them or be purchased through
banks of trust companies authorized to do business in Illinois.
L. Repurchase agreements for securities other than government securities. Subject to the
limitations of Section 2 (h) of the Public Funds Act, Ill. Rev. Stat. 1989, Ch85, S902 (h).
M. In any investment as authorized by the Public Funds Investment Act, as amended.
DATED: March 1999
REVISED: January 24, 2005
REVIEWED: March 13, 2006
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